Annual Assembly, Annual Meeting - Assessment of the
management accounts of limited liability companies
We would like to remind you that limited liability companies must hold General Meetings (companies with more than 10 partners) or Annual Partners' Meetings (companies with less than 10 partners, in case the articles of organization are silent on the matter or the articles of organization so require) to examine the management accounts within the first four (4) months following the end of the fiscal year.
For companies with fiscal year ending on December 31st, such term expires on April 30, 2017.
Although this issue is still controversial and has been widely discussed since the publication of Law No. 11638 of 2007, which determined that the provisions of the Corporations Law about bookkeeping and preparation of financial statements apply to large-sized limited liability companies, the requirement for such companies to publish their financial statements before their general meetings or annual partners' meetings to resolve on them currently prevails because of a court decision and resolutions issued by the Registries of Commerce.
Large-sized limited liability company is a company or group of companies under common control whose total assets exceeded 240 million reais or annual gross revenue exceeded 300 million reais in the previous fiscal year.
Finally, please note that if the balance sheet is not approved, the officers will not be discharged from liability for the accounts for the related fiscal year.
We remain at your service to provide any clarifications you may need.